Apple's new foldable, the iPhone Duo, is headed to market, but production hurdles behind the scenes could complicate its rollout. According to Chinese news outlet Jiemian News the final assembly yields for the device stood only slightly above 60% as of September 17. The same source said that under Apple's current quality standards, reaching full production recovery could take anywhere from six months to a year.
Foxconn Repeatedly Adjusting Its Process
The report notes that getting the Duo's manufacturing up to scale hasn't been straightforward for Foxconn, which has had to go back and make changes on multiple fronts, reworking equipment setups, reconfiguring assembly steps, and dialling in production settings as issues have come up. Suppliers, meanwhile, are reportedly waiting to see whether Apple will relax any of its quality requirements in order to speed up output.
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Display And Hinge Issues Add To The Strain
The production challenges reportedly go beyond just the assembly line itself. Two specific components have been problem areas: the Samsung-supplied display panels and the hinge mechanism, both of which have struggled with low yields, late deliveries, and changes made to their design mid-development.
Because of this, assemblers have reportedly had less time than usual to work out the kinks in the production process before ramping up. The report also notes that Apple had tested Liquid Metal for certain parts earlier in development, before reassessing that approach ahead of mass production. Apple has said the hinge itself is made up of more than 100 individual components.
A Trade-Off Between Yield And Output
Some contract manufacturers have reportedly asked Apple to choose between prioritising yield and pushing for higher output. The logic, per the report, is that pushing the production line to work faster would mean more finished phones coming out the other end, but it would also likely increase the number of units that turn out defective along the way.
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Scalpers Move In On Limited Supply
The iPhone Duo is reportedly already attracting scalpers, who are said to be buying up units with plans to resell them overseas in regions where the Duo hasn't launched yet. These resold units are expected to carry prices well above the device's $1,999 starting price.
According to Bloomberg's Mark Gurman, the combination of high demand and Apple's production shortfall could turn the Duo into a high-priced commodity for scalpers. He added that the shortage could worsen further as scalpers continue buying up available stock while regular customers try to purchase the phone directly through Apple.
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